9th Jul 2020 17:52
(Alliance News) - Aberdeen Emerging Markets Investment Co Ltd said Thursday it has underperformed against its benchmark for the six months to the end of April.
The investment trust's net asset value negative return was 11.4%, compared to the MSCI Emerging Markets Net Total Return, which had a negative return of 8.0% in sterling terms.
Net asset value per share as at April 30 was 578.15 pence, down from 672.14p the same date the year before and from 663.28p the end of October.
Aberdeen Emerging Markets's share price at the end of April was 497.5 pence, reflecting a discount to net asset value of 13%.
Shares in Aberdeen Emerging Markets closed 0.2% lower at 561.62 pence on Thursday in London.
The trust declared a third interim dividend of 5.5 pence per share, in line with the first and second quarter. Aberdeen Emerging Markets said it expects to pay at least the same amount for the final dividend, bringing the total payout to no less than 22p.
"Whilst recent monetary policy stimulus has helped support markets in the short term, there is a great deal of uncertainty over the longer term implications of the Covid-19 pandemic. The easing of lockdown restrictions across the world might enable economic activity to increase, but it is unlikely to return to its previous levels for some time. There have already been significant downgrades in the expectations for corporate earnings in emerging markets and the crisis will also have a significant impact on the debt burdens of individual countries. For the time being, emerging markets are therefore likely to remain volatile," said Chair Mark Hadsley-Chaplin.
By Dayo Laniyan; [email protected]
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